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Earlier this year, a special Money Mail report found zombie
with-profits funds produce less than half the growth of strong funds
still open to new investors.

However, many zombie funds still trap investors in by imposing
withdrawal penalties - known as market value adjusters - if they take
their money out early. The Sun Life fund currently has penalties
averaging 10 per cent on a few of its bonds.

Axa says it has decided to close the fund to new investors
'because few customers have invested in the SLAS with-profits fund in
recent years'.

Its chief actuary Peter Shelley says: 'The decision to close
the fund to new customers will not affect the way we manage the fund
and calculate the bonuses we pay to customers in that fund.'

According to the latest with-profits survey by Money
Management Magazine, a £50-a-month, 25-year with-profits endowment
taken out originally by a 30-year-old man in the Sun Life fund would
mature this year at £33,310. In comparison, a similar plan with
National Provident Life - which has been closed to new investors for
several years - would be worth £24,915.

In its last bonus declaration in February, the annual bonuses
on the fund were kept the same, but Axa said it was cutting terminal
payouts compared with last year - so that a SLAS endowment maturing
this year would be worth 19pc less than last year.

Axa has another with-profits fund - the £8billion Axa Sun Life (ASL) which currently remains open to new investors.